Rayonier Inc. Making Huge Timberland Buy Near Savannah

Rayonier Inc. announced that the company has entered into three transactions with separate sellers to acquire approximately 95,100 acres of high-quality industrial timberlands located in Florida, Georgia and South Carolina for an aggregate purchase price of approximately $217 million, or $2,280 per acre. The Acquisitions are comprised of highly productive timberlands located in some of the strongest timber markets in the U.S. South, primarily along the I-95 coastal corridor near Savannah, GA.

Key attributes of the Acquisitions include the following:

Strong timber markets – located in the top three U.S. South timber markets based on average composite stumpage price by region (1)

Accretive to cash flow – targeting an annual increase in Adjusted EBITDA** and Cash Available for Distribution** of approximately $13 million and $10 million, respectively, over the medium-term

Rayonier expects to finance the Acquisitions with cash on hand and the proceeds of a follow-on offering of Rayonier common shares, which the company also announced today. “The Acquisitions announced today are representative of Rayonier’s commitment to disciplined capital allocation and active portfolio management,” said David Nunes, President and CEO. “These Acquisitions are comprised of highly productive properties that meaningfully bolster Rayonier’s footprint in our strongest U.S. South markets. We expect these Acquisitions to generate a strong cash yield from timber harvest operations, which will thereby improve our overall cash flow profile, increase the percentage of our Adjusted EBITDA generated from timber segments, and enhance our ‘pure-play’ timber REIT focus,” concluded Nunes.

* References to “merchantable timber inventory” and “sustainable yield” are as defined in our most recent Annual Report on Form 10-K.

** “Adjusted EBITDA” and “Cash Available for Distribution” are non-GAAP financial measures. See “Non-GAAP Financial Measures” below. These targets are based on assumptions and are subject to significant uncertainties, many of which are outside of the company’s control. While management believes these targets and the underlying assumptions are reasonable, they are not guarantees of future performance. Actual results will vary, and those variations may be material. Please consult the Forward-Looking Statements discussion below for some of the factors that may cause variations. Nothing herein is a representation by any person that these targets will be achieved, and the company undertakes no duty to update its targets.

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